Why Did Nebius Surge on Thursday? Nvidia Named It First Customer

Nebius Group shares rose more than 6% in Thursday's premarket trading. Nvidia's AI hardware supply update boosted sentiment in the computing infrastructure sector.

Nasdaq futures rose 0.81%, while S&P 500 futures gained 0.26%.

Nvidia Names Nebius First Customer

During Nvidia's earnings call on Wednesday, the company's CFO said mass shipments of the Groq 3 LPX are expected to begin later this quarter. Nebius is expected to be the first customer.

Nvidia reported second-quarter revenue of $96.2 billion, up 106% year over year. Revenue beat Wall Street estimates of $92.18 billion. Adjusted earnings per share came in at $2.22, above the consensus estimate of $2.10.

Technical Analysis

Nebius remains in a strong long-term uptrend. The stock is trading about 50% above its 200-day simple moving average of $150.79. It is also about 11% above its 100-day simple moving average of $204.69.

Additionally, the stock is trading 2% to 3% above its 20-day and 50-day moving averages. This keeps the short-term trend positive.

The relative strength index stands at 48.11, indicating neutral momentum. However, the 20-day simple moving average remains below the 50-day simple moving average. This bearish crossover suggests the stock is still digesting its earlier gains.

Resistance sits near $230. Support is around $200.50, near the prior pivot point and below the 100-day simple moving average.

Analyst Outlook

The stock has a consensus rating of Buy with an average price target of $248.83. Citi recently raised its price target to $324 and maintained a Buy rating. DA Davidson raised its target to $250 while keeping a Neutral rating.

Edge Rankings

According to Edge Stock Rankings, Nebius has a momentum score of 97.87. However, its value score is only 4.53. These scores indicate strong price momentum but expensive valuation.

ETF Exposure

The Leverage Shares 2X Long NBIS Daily ETF has 111.6% exposure to Nebius. Therefore, fund inflows and outflows could amplify buying or selling pressure on the stock.

Price Action

Nebius shares rose 6.25% to $227.30 in Thursday's premarket trading.